Good afternoon, everybody and welcome to the San Francisco board of supervisors meeting of march 1 22nd. M clerk please call the roles we did thank you. Supervisor avalos aye president s agreed, present. Campos, present. Cohen not present, the farrell, present. , kim, present. , mar, present. , peskin, present. Tang, present. , wiener not present, yee not present. You have a quorum. Ladies and gentle please join us in the pledge of allegiance. [pleage of allegiance] madam clerk either any Communications Clerk none to report colleagues any changes to the generate 26 2016 Board Meeting minutes clerk seen no changes, a motion to approve those minutes moved and seconded. Can we take that without objection . Those we passed after Public Comment [gavel] can you please read the consent agenda. Items one and 2 are on consent. These items are considered routine if a member objects, and item may be removed and considered separately seen no names on the roster item clerk these culpable on the consent calendar supervisor wiener aye, yee absent avalos aye, breed aye, campos aye, cohen aye, farrell aye, kim aye, mar aye, peskin aye, tang aye. There are 10 aye those ordinance are finally passed unanimously [gavel] bettencourt item 3 item 3, and ordinance to establish an infrastructure financing district including subproject area. 70 this to work core and would often infrastructure financing plan and appendix for City Infrastructure financing district number 2 to approve a tax initiation agreement and the ceqa determination supervisor cohen i want to thank you for your support on this item. This i have the is critical to the pier and it we helping us to develop a financing plan to fund the parks, street improvements, infrastructure needs that currently exist. Some of my colleagues have expressed an interest in hearing the whole presentation. As we do not do this last week and the item was not heard at the budget committee. So, i want to present to youweve got representative from the port making a presentation to answer whatever questions you may have on this very important piece of legislation. Good afternoon members of the board. President s pretty good im elaine forced interim port director and im here today on the final lead of the ift and associated infrastructure financing plan. Both to provide an overview and request your approval. As supervisor cohen noted, what youre considering today is a very important piece of the ports land to address its backlog among capital backlog, to invest in needed Public Infrastructure, to revitalize port property, and to provide really critical public realm improvements that are needed for the growth in these areas to provide good neighborhoods. While the ift is relatively small, 23. 4 million, it really reflects much larger tool that will be able to use together to address are now 1. 3 billiondollar backlog. Today youre at the end of it was decadelong effort that support has gone through to find creative financing tools to deal with our backlog in this effort really culminated in 2012 when the Capital Planning committee in this board of supervisors approved a policy to guide port ift and this policy has helped us structure this particular infrastructure financing plan and that policy calls for a review of impact to general fund and to ensure the general fund is net positive good from the project and that we maximize the state share of tax from our infrastructure financing plan and that we understand maintenance costs and have a plan for maintenance cost, that we do excellent Public Outreach and after the boards approval, we continue to work with the Capital Planning committee to review the infrastructure and public realm improvements are cost effective. So, this will be our first ift and alternate over to brad benson and he will walk through the details. Good afternoon president breed and members of the board. Brad benson director of special projects. Here representing the port team on this project. So, we are really excited about whats happening at pier 70. This board of supervisors approved a Lease Agreement with the Norton Development and the port, a 66 year we lease to reedit some important Historical Resources at pier 70. Pier 70 is the home of ship repair and has been for 150 years, and theres this wonderful collection of Victorian EraHistoric Buildings that comprise the union iraqs historic district. Norton is rehabbing 8 of them and that Construction Activity is underway now and its the beginning of some pretty dramatic changes that are going to happen on the 70 acre pier 70 site. As alain mentioned, weve been working for 10 years to establish these infrastructure financing district powers. Ift interest infrastructure financing districts alike we develop in law. Used to operate where the legislative action to the board of supervisors can set a base year, and then gross and property taxes above that year can be captured by the infrastructure financing district and bonded against to fund Public Infrastructure improvements. So, weve had a lot of help along the way. Sen. Mcminn and 25, some remembermy former boss in 2010, and then i have the policy supervisor kim and mayor lee sponsored for us in 2013 we really appreciative of all of that hell. We have developed. Into distinct edge and we still shall repair operating on a good portion of the site. This year, with the generosity of voters voting phase 1 of crane cove park about a 10 acre park opening in just about a year. Norton as i said before is rehabbing that store buildings on 20th st. And more working with a partner to develop a mixeduse neighborhood on the waterfront site, the 28 acre waterfront site and we back to the board of supervisors with that project hopefully in early 2017. The legislation before the board last week with the ordinance that you are hearing a 2nd lead today in 2 resolutions. One, approving the issuance of bonds not to exceed 25 million, and the other approving a memorandum of understanding between the port about the controller and the Tax Collector governing the administration of the ift. We are working hard to establish this ift in fiscal year 20162017 if the board adopts the ordinance on 2nd lead today, the Effective Date for that ordinance will be april 10 and we hope to go to courts to do a judicial validation action by may 9 of this year. As alain mentioned, we are leveraging the local sheriff property tax which represents about . 65 of every property tax dollar with the state share, which is another . 25 at pier 70. So it will capture . 90 on the dollar in an ift. The other . 10 goes to the local county education office, bart and the air district did not touching that portion of the property tax. We expect to be able to collect approximately 710,000 per year through the ift over a 45 year period. The legislature cant you did it share because of the real bladed conditions at pier 70 which was a fundamental to redevelopment law. We have 11 condemned buildings at the site. 14 are least restrictive. Theres environmental contamination and we have not had a real project investment in the site for many decades. So, looking to the sources and uses initially the developer and the port are going to contribute sources approximately 1. 7 million. Then, in about 5 years, subject to this boards approval, a bond totaling about 6. 6 million , and then we will collect tax increment on a payasyougo basis annually totaling about 50 million. We will use those sources to find projects funded by a goat which will go over both of those in the moment and to pay interest on bonds. The usesi talked about using geobonds to fund crane cove park phase 1. The bulk of this ift funding will go to crane cove park phase 2, about 14 million. Were going to need to find additional sources like future geobonds to fund the remainder of that project. We need to move electrical infrastructure out of one of these Historic Buildings. Its infrastructure that acid provides power, public power to the shipyard and theres some transformers that we need to get out of that building to allow we have of the building and we have some important sidewalk and ada improvements. So this is phase 2 of crane cove park shown in red. This will be one of the most amazing parks on the east side of the city overlooking ship repair. It will be eventually 20 acres in size. A huge asset to the eastern neighborhoods. This is the electrical infrastructure and building 102 we need to replace to have a functioning shipyard and then on 20th st. , we need to repair sidewalks and make it safe for ada access. So, elaine emphasized that in this process the mayors Budget Office and the Controllers Office wanted to give a lot of thought protecting the general fund. We are captioned property taxes that would otherwise go to the general fund. So we done an exhaustive analysis of what the general fund impact is. We are looking at the other taxes the project will generate, sales tax, business taxes, etc. Emma and were seeing on the lowend, 24 million in general taxes to the general fund. On the highend, if we have some high gross receipts tax payers, 38 million, and only 8 million in general fund in police, fire and interest expense. So we think the general fund number with this project and the investments made through the ift make the general fund that to the good between 60 million and 30 million. This new employment will be happening at pier 70 the businesses occupying these Historic Buildings will employ up to 165 people. We see a lot of Construction Activity happening right now, about 10 million of construction payroll direct and indirect. So we think theres a lot of benefits of the project overall. We hope that will be able to store this torque levels of public use and enjoyment of we hope that will be able to store this torque levels of public use and enjoyment of pier 72 this and the followup project. He did can you go back to the employment side in terms of jobs, can you explain on this project, how many local higher specifically as well as whether or not they use lv are mine or the businesses work contractor for their hiring with regard to this project . With respect to norton was using their private equity and debt and also geo bond loans seismic safety loan, they are required to do a high level lb participation in their project. Lb participation is 17 in the project. They been looking at all the crafts and trades who are working on those buildings to reach that 17 threshold. That is monitored by oewd and cindy i mean, for example, what is the percentage of San Francisco residence working on this project . We will have to reach out to origin to get the percentage, the local resident portion on the origin project. More specifically, residents of the southeast sector and understanding where these residents are located . Okay. With respect to the project funded by the ift thats before you today, these will be public works projects. So, the park crane cove park phase 2 project, the electrical infrastructure project, or did they take on some of the sidewalk repairs around the buildings but the bulk of the work being funded by the ift will be public works, and we will be working with our sister city agencies to set ld percentages and to recruit local residents to those jobs. Proviso avalos just on local hiring i was a multitasking so i do not hear the whole conversation on local hiring, but the legislation that says on public land we need to be building at 30 local hiring across every trade, so thats not the goal on hearing . That is the goal. What im saying is all the id funded projects are going to be public works projects subject to that legislation. Very good. Thank you. But you dont have the specific numbers for the project now as it relates to the percentage of local hires currently working on this project . But i dont have is information on the Origin Development project which is is the area over which were forming the ift but the board approve the origin project this last year yes, i do realize that so we will come back to you with an update where wharton is that good with respect to the projects funded by this id, we have not yet finalized the project designs. We will go through the process and follow the boards legislative policy mandate thats going to be important because the previous project that we approved, got complaints that local higher has not been a priority and lb contractors have not been a priority. So i am concerned. I dont have the accurate information. I mean i dont have any information to help me understand whether or not that is the case. But, i have received a number of complaints about this project in particular and so i am very concerned and wanted to make sure that i bring that to your attention okay. We take that seriously and well contact our Development Program and get back to your office this week thank you. Did you want to continue with your presentation was that it . Thats it. I did one take a moment to thank the controller then rosenfield and his staff get the maser Budget Office so much with the id policy and put together this ift teleport staff and City Attorneys that worked on the project. And the budget analyst was a marvelous work with thank you. Colleagues, any comments, questions . Seen no names on the roster, can we take this item same house, same call i think youll need a roll call. Supervisor yee will call on item 3 wiener aye, yee aye avalos aye breed aye, campos aye, cohen aye, farrell aye, kim aye, mar aye, peskin aye tang aye. There are 11 aye the corridor is finally passed unanimously [gavel] the next item please spit supervisor yee i would like to rescind the boat on item 1 and 2. Supervisor yee has made a motion to rescind the vote on item 1 and 2. Seconded by supervisor peskin get can we take that without objection . Without objection, the boat has been rescinded. [gavel]. Colleagues can we take item 1 and 2 same house, same call . Without objection those ordinance are finally passed unanimously [gavel] be the next item these item 4 is a Charter Amendment for staff to amend the charter of the city and county of San Francisco to authorize the board of supervisors to update the inclusionary work portal housing obligation for Housing Development projects and setting forth increased interim requirement in affirming the planning component ceqa determination at an election to be held on june 7, 2016 supervisor kim to the members of this board, before us today is a Charter Amendment to exclude and delete a portion of the charter from the Housing Trust fund that would take away a ceiling on her inclusionary housing requirement of 12 set for Market Rate Developers. In the city and county of San Francisco. This Charter Amendment was put forward in an effort to help reach our citys goal of pain 33 Affordable Housing. At 50 , affordable and middle Income Housing could we know that inclusionary housing is an important tool in allowing us to hit that goal and its a tool but also does not require any general funds or public subsidy. We know that developers can do 15 . This was a percentage the developers were able to hit 32012 and the passage of Housing Trust fund. The initial women with Housing Trust fund back in 2012 was that under very different circumstances, a time when we were in recession, when we are seeing a slowdown in the market him and also in an effort to help spur development and muchneeded housing here in San Francisco. But also to help secure funds that we believe we would lose to the loss of redevelopment and capturing of tax increments to build Affordable Housing. This, my sellouts to the board to the ballot a Charter Amendment which would set aside a portion of our budget equivalent to the tax anchorman set aside for Affordable Housing, plus in exchange reducing the onsite obligation for market we developers from 15212 . We do not anticipate the incredible bucket economy that was followed both in job creation and growth but also the incredibly lucrative Real Estate Market that followed. In this time, we are seeing the immense production of market rate housing does push the city to build more affordable and middle Income Housing. So, the Charter Amendment before us today delete any type of ceiling provided to developers under inclusionary onsite moment allows the board to set this inclusionary policy as needed based on what we deem as proper policy. In the interim, the Charter Amendment also sets a new goal. It sets a new goal of doubling our inclusionary requirement corrupting our Market Rate Developers back up to the 15 that we know they can build for households of 55 of average Median Income and below, and on top of that, asking developers to build 10 middle Income Housing on top of accurate reading it to 25 . We also, as you raise the onsite obligation, also believe there has to be equivalent in th